Sensex zooms by 103 points to new peak

MUMBAI, JANUARY 10: Not letting go the opportunity, bulls extended their New Year dance for the second successive week. Share values and i...

MUMBAI, JANUARY 10: Not letting go the opportunity, bulls extended their New Year dance for the second successive week. Share values and indices hit record highs on Monday following a sharp jump in the Nasdaq composite index of the US and other world markets. The benchmark Sensex of the Bombay Stock Exchange (BSE) gained 103.91 points, or 1.92 per cent higher, at 5,518.39, off an intra-day all-time high of 5,668.28.

Sensex later fluctuated erratically in a wide range of 5668.28 and 5459.97 before closing at a new record at 5518.39 as against last week-end close of 5414.48. The BSE-100 index shot up by 33.84 points to 2803.60 from previous close of 2769.76.

Dealers said software shares were mixed with speculators cutting losses in front-line stocks after building positions at high levels early last week. "Undervalued cyclical and fast moving consumer goods shares remained in focus. There is basically slow churning of portfolios," said Jatin Sarvaiya, managing director at Triumph International Finance India Ltd.

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Foreign funds were reportedly net buyers in cyclical stocks like Reliance, Tisco and some others besides software scrips like Digital Equipment and Zee Telefilms. Domestic financial institutions bought shares of Satyam Computer and a number of Indian stocks. In the specified group, 30 scrips were locked in upper circuit filter at close. However, Tata Elxsi hit the lower price band. Satyam computer was the most active scrip with a turnover of Rs 382.61 of the total volume of business of Rs 3367.18 crore.

Reuters adds from Singapore: Asian markets rose across the board on Monday, with Hong Kong stocks closing up almost three per cent, reassured by Wall Street’s rally and the belief a possible US rate hike would be a manageable 25 basis points.

After a sell-off of high-tech issues last week, Hong Kong’s Hang Seng index closed up 2.9 per cent at 15,848.15. Australian stocks closed up 1.9 per cent at 3,103.1. "We were up across the board. The United States was up over two per cent and we rebounded on the back of that, plus you have Hong Kong up about three percent," said Reynolds Stockbroking director Peter Struk, referring to the active buying that pushed the Sydney index to its biggest points gain since August 1999.

South Korea’s main index ended over four per cent higher at 987.24, on telecoms strength and relief after the government announced plans to soak up part of Daewoo Group bonds that have dented stock buying by investment trusts. Singapore’s main index was up 1.6 per cent at 2445.46 but off its earlier highs.

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The Nasdaq composite index closed Friday up 155.49 points or 4.17 per cent at 3,882.62, its biggest point gain ever, surpassing a 127.28-point jump on December 21, 1999. The Dow Jones industrial average climbed 269.30 points or 2.39 percent to a record 11,522.56, surpassing the previous high of 11,497.12 set on December 31. It was up 0.23 percent for the week.